Definition: Request for Proposal

What is a request for proposal?

A Request for Proposal (RFP) is a formal document used by companies to solicit detailed proposals from potential vendors for a specific project or service. The RFP outlines the project’s requirements, objectives, scope, timeline, and any technical specifications. Vendors respond with comprehensive proposals that detail how they would address these needs, including their approach, methodology, relevant experience, and the resources they would allocate.

By issuing an RFP, companies aim to compare different vendors’ solutions and capabilities to determine the best fit for their project. This process helps them evaluate how well each vendor’s proposal aligns with their goals and constraints.

Often, companies begin with a Request for Information (RFI) to gather general information about potential vendors before issuing the RFP. After reviewing RFP responses, they may issue a Request for Quote (RFQ) to obtain detailed pricing and cost breakdowns, which assists in making the final selection decision.

Need help creating an RFQ?

Looking for a PIM solution and need assistance with your RFQ?

Download our RFQ template, available at no cost. This Excel file is pre-loaded with 70 essential questions to help you cover all critical aspects of your project. You can tweak the template to fit your specific needs — add, remove, or edit questions as necessary.